The analyst team at Oppenheimer has just released its monthly list of top stocks to own for the next 12 months. With the Standard & Poors 500 index surging another 2.2 percent in the past month to new all-time highs, investors concerned about steep stock valuations are looking to be as selective as possible. Each Oppenheimer equity analyst contributed his or her top stock idea for the next year. Analysts selected what they see as the most timely investments based on company fundamentals and prevailing market conditions. Here’s a look at 10 of the stocks they chose.
- Broadcom Ltd (AVGO)
Analyst Rick Schafer[WD] says Broadcom is the gold standard in ther red-hot semiconductor industry. Even with Broadcom stock already up nearly 40 percent year-to-date, Schafer says there are four reasons the stock will continue to outperform the market. First, he says the Broadcom is the market leader in the high-end filter business, a segment that is experiencing a secular growth trend. Second, Broadcom’s highly diversified non-mobile business is both “differentiated” and “sticky.” Third, Broadcom’s technology advantages are compounded by its management and manufacturing advantages. Finally, Schafer says recent acquisitions will help drive earnings and cash flow upside.
- CIT Group Inc. (CIT)
Financials have been popular stocks among investors in 2017. The climate of deregulation in Washington coupled with a series of interest rate hikes from the Federal Reserve have given banks more wiggle room for profitability. While big investment banks struggle with slumping trading revenues, analyst Chris Kotowski[WD] says regional banks such as CIT Group are well-positioned to benefit from an improving core banking environment. CIT’s stock trades at a price-to-tangible book value of only 1.06, but Kotowski says that ratio will likely expand as CIT eventually closes its valuation gap relative to peers.
- Comcast Corporation (CMCSA)
The traditional cable TV business hasn’t been…
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